- Fitch Ratings maintains its neutral outlook on the global shipping sector.
- It is due to continued strong market conditions for container shipping (albeit with some downside risk) and dry bulk, and expectations that the tanker segment could improve after a weak 2021.
A recent news article published in the Fitch Ratings talks about Fitch Ratings 2022 Outlook: Global Shipping.
Supply-demand balances into 2022
A continued global economic recovery is important for all shipping segments to maintain their favourable supply-demand balances into 2022.
Key downside risks include a slower-than-forecast economic recovery or a resurgence of Covid-19 cases, leading to a collapse in demand.
On the other hand, pandemic-related restrictions have also led to supply-chain issues, including port congestion, which have supported rates, particularly for container shipping.
Increase in Trade protectionism
A potential increase in trade protectionism during the recovery could limit demand in some segments.
Developments in International Maritime Organization (IMO) or EU emissions regulations could affect the medium-term outlook for cost structures or the earnings capacity of some shipping segments. Stable Outlooks dominate our global shipping portfolio.
Current rating thresholds
The companies are well placed within their current rating thresholds following rating actions in 2021.
We expect similar financial performance in 2022 as we forecast freight rates to be fairly supportive, while tanker shipping is relatively more exposed, which should underpin shipping companies’ financial metrics.
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Source: Fitch Ratings
